Implementing Order Value Based Payment Priority

Luxury home goods retailers face a unique opportunity when it comes to payment options: customer preferences and needs shift dramatically based on order value. For higher-value purchases, customers often prefer financing options that allow for installment payments, while for lower-value purchases, they typically opt for quick, convenient payment methods. A one-size-fits-all payment option display doesn't account for these differing needs.

The solution is to dynamically reorder payment options based on the cart total value. Standard Shopify checkout settings don't support value-based payment prioritization, but with the Sway Functions, you can create sophisticated payment functions that detect the order value and reorder payment gateways to emphasize the most appropriate options for each scenario.

The Business Case for Order Value Based Payment Priority

Step-by-Step Implementation

1. Access the Payment Functions Section

1. From your Shopify admin, open the Sway Functions app
2. Click on "Functions" in the main navigation
3. Select the "Payment" tab

2. Create a New Payment Function for High-Value Orders

1. Click "Create function"
2. From the modal, select "Reorder Payment Gateways"
3. You'll be taken to the function editor

3. Configure Basic Settings

1. Enter a descriptive campaign name (e.g., "High-Value Order Payment Priorities")
2. Set the function status to "Active"

4. Define High-Value Order Condition

This is where you'll specify when financing options should be prioritized:

1. Under "Cart Qualifier," select "Cart Total"
2. Choose the condition "greater than or equal to"
3. Enter your high-value threshold (e.g., "$500.00")
4. This ensures the function activates for orders exceeding $500

5. Configure Payment Gateway Prioritization

Now define which payment options should be prioritized for high-value orders:

1. Under "Payment Gateway Actions," select "Reorder Gateways"
2. Choose "Gateway Name Contains"
3. Enter financing options to prioritize (e.g., "Affirm", "Klarna", "Shop Pay Installments")
4. Set "Move to Position" to "1" (top position)
5. This ensures financing options appear first for large purchases

6. Create a Second Function for Mid-Range Orders

1. Create a new payment function
2. Name it "Mid-Range Order Payment Priorities"
3. Under "Cart Qualifier," select "Cart Total"
4. Set the range condition to between your lower and upper thresholds (e.g., "$200 to $499.99")
5. Configure a balanced payment option ordering
6. Set appropriate priority to ensure this function applies to mid-range orders

7. Create a Third Function for Low-Value Orders

1. Create a new payment function
2. Name it "Low-Value Order Payment Priorities"
3. Under "Cart Qualifier," select "Cart Total"
4. Set the condition to "less than" your lower threshold (e.g., "$200")
5. Prioritize quick payment options like credit cards and digital wallets
6. Set appropriate priority to ensure this function applies to low-value orders

8. Save and Test

1. Save all functions
2. Test thoroughly with different cart values to ensure the correct priorities apply at each threshold

Advanced Configuration Options

Product Category-Specific Payment Priorities

For different priority rules by product type:

1. Add product tag or collection qualifiers alongside cart value conditions
2. Create separate functions for different product categories
3. For example:
   • Furniture: Emphasize financing at $1,000+
   • Decor: Emphasize financing at $500+
   • Accessories: Emphasize quick payment methods at all price points

Customer Segment Considerations

For payment priorities that consider customer history:

1. Add customer tag qualifiers to your payment functions
2. Create different priority rules for different customer segments
3. For example:
   • New customers: Strong emphasis on financing for large purchases
   • Repeat customers: Balanced emphasis on preferred previous methods
   • VIP customers: Highlight exclusive payment benefits

Seasonal Payment Priorities

For promotional periods with special financing:

1. Create time-limited payment functions with enhanced financing visibility
2. For example: During holiday season, highlight special financing at lower thresholds
3. Set specific start and end dates for the seasonal priority rules

Implementation Example: Luxury Home Goods Retailer

Here's a real-world example from a luxury home goods retailer:

1. Low-Value Orders (Under $200):

   • Payment option priority:
     1. Credit/Debit Cards
     2. Apple Pay / Google Pay
     3. PayPal
     4. Shop Pay
     5. Financing options (deprioritized)
   • Reason: Quick checkout preferred for smaller purchases

2. Mid-Range Orders ($200-$499):

   • Payment option priority:
     1. Credit/Debit Cards
     2. Shop Pay
     3. Shop Pay Installments
     4. Affirm / Klarna
     5. PayPal
     6. Apple Pay / Google Pay
   • Reason: Balanced presentation of standard and financing options

3. High-Value Orders ($500+):

   • Payment option priority:
     1. Shop Pay Installments (0% for 6 months on $500+)
     2. Affirm Financing (0% for 12 months on $1,000+)
     3. Klarna (Pay in 4)
     4. Credit/Debit Cards
     5. Other payment options
   • Reason: Emphasize flexible payment options for larger purchases

Merchandising Your Payment Priority Strategy

To maximize the effectiveness of your value-based payment prioritization:

1. Add Pre-Checkout Messaging - Highlight available financing for high-value items
2. Create Financing Information Pages - Explain payment options for different price ranges
3. Include Cart-Value Triggers - Show "Unlock special financing at $X more" messaging
4. Develop Product-Specific Financing Callouts - Highlight payment options on high-value product pages
5. Use Exit-Intent Messaging - Remind abandoning customers about flexible payment options

Real Results: Luxury Home Goods Retailer Case Study

A luxury home goods retailer implemented order value-based payment prioritization with these results:

• 34% increase in average order value for purchases including financing options
• 28% increase in conversion rate for orders over $500
• 42% higher adoption rate of financing options for qualified purchases
• 18% reduction in cart abandonment for high-value orders
• 22% increase in repeat purchase rate for financing customers

Measuring Success

To evaluate the effectiveness of your value-based payment priority strategy, monitor these metrics:

• Conversion Rate by Value Tier - Are conversions improving in different price ranges?
• Average Order Value - Has overall AOV increased with better financing visibility?
• Payment Method Distribution - Which payment methods are being selected at different price points?
• Cart Abandonment by Value Tier - Are fewer high-value carts being abandoned?
• Incremental Cart Value - Are customers adding more to reach financing thresholds?

Common Issues and Solutions

| Issue | Solution | |-------|----------| | Financing options not increasing conversion | Adjust thresholds or improve pre-checkout messaging | | Preferred payment methods getting buried | Balance prioritization with customer preference data | | Payment gateway identification challenges | Consult with payment providers for exact gateway identifiers | | Inconsistent threshold messaging | Align marketing, product page, and cart messaging about financing |

Next Steps

Ready to implement order value-based payment prioritization for your luxury retail store? Start by:

1. Analyzing your product price points and typical order values
2. Identifying natural threshold breakpoints for different payment emphasis
3. Understanding which payment options are most appropriate at each price level
4. Creating your payment gateway prioritization functions
5. Developing supporting marketing materials that highlight available payment options

For personalized assistance with your payment strategy, book a consultation with our team.